The Tech Quiz - Season 12
My Introduction
| Assalamualaikum hope everyone is doing well, Im Danish Karim And I'm Medical Student I have Completed My BMS(OT) in 2022 last.This is my participation in contest The Tech Quiz - Season 12 going to share information about all Question That asked In thsi Contest By @malikusman1 Thanks @malikusman1 for This hardwork and organization of this Contest .Thank to all for your support, and I appreciate the support of all of you. |
|---|
The Tech Quiz - Season 12
What is the purpose of a cryptocurrency exchange?
A cryptocurrency exchange is very important for crypto trader who have low fund it help people with a market where people can buy, sell, and trade different kinds of digital money. Its main job is to help people swap one type of digital money for another or for regular money like dollars or Euros. im taking Usd eur example but cryptocurrency have too many coj there are different types of exchange everyone have their on unique features like good leverage low fee etc. and Extra coins Listed. and People are using exchange for Trading they can't trade without any exchange they should must need An exchange account for cryptocurrency buying These exchanges make it easier for traders and investors to do business safely and find out the prices of different cryptocurrencies.Its all about Exchanges.
Why is security important in the context of cryptocurrency exchanges?
Security is very important in cryptocurrency exchanges because they handle digital money and private financial details of all users who trading on platform. so now Im going to share some points why security is important for exchanges?:
- Protection from Hacking: Cryptocurrency exchanges are often targeted by hackers who want to steal money like any crypto coin Btc, eth its just an example of some coin .If hackers succeed users could lose their funds and the exchange's reputation could be damaged like when AXS means Infinity coin was Hacked then the reputation of Infinity from 150$ to drop 6$ this was just for hacking same in exchange if any exchange will be hacked then it will not be good for their reputation.
- Keeping User Money Safe: Exchanges keep users' money in digital wallets in any Pair form Like btc usdt eth usdt or in singke frm only like btc ,eth ,bnb. It's crucial to have strong security to stop unauthorized people from accessing and stealing these funds so thats why it's also a main reason for security.
- Building Trust: If there's a security breach, users and investors may lose trust in the exchange. A secure exchange shows it cares about protecting users' money and keeping the platform honest so a strong security can only make people trust and gain trust if trust rate will be high then more investir or users will come to an exchange.
- Following Rules: Many places have rules for cryptocurrency exchanges to protect customers and stop illegal activities like money laundering. Following security standards helps exchanges obey these rules in Pakistan exchanges is not legal but the country who have its legalized so They have this rules.
Overall the focus on security helps keep users' money safe the main point and builds trust in the exchange and makes sure it follows the rules. i hope you will understand from my explanation.
hat distinguishes decentralized exchanges from centralized ones?
Decentralized exchanges (DEXs) and centralized exchanges are different in some important ways:
- Control and Ownership:
Centralized exchanges are run by one company, so they have full control over how they will work .
Decentralized exchanges work on blockchain networks and don't belong to any one company. They're managed by smart contracts and everyone using them.
- Security and Trust:
Centralized exchanges keep users' money and info on their own servers, which can be targets for hackers.
Decentralized exchanges let users keep control of their money in their own wallets making it harder for hackers to steal because they are in users hand.means wallet
- Liquidity:
Centralized exchanges usually have more money moving around because they control the trading.
Decentralized exchanges might have less money moving around since trading happens directly between users.
In short, decentralized exchanges are safer, harder to control, and give users more control, while centralized exchanges have more money moving but require trusting a single authority.
I'm Inviting @woodmoneyking,@ayushsarkar,@yenny47,@nalainzahr,@mubasherali,@shahid2030 @artist1111 @sahar78 @chasad75 @reetuahlawat @monta26 @nushrat @beemengine @kyrie1234 @seo-boss @steemitbloq for participate in this contest.
Thank you for visiting my post
Written by @danish578 Contest-Topic The Tech Quiz - Season 12 Community Steem4bloggers Picture Source Mentioned with All pictures Editing Default Beneficiaries 25% @null Thanks For Voting My Post 
The Tech Quiz - Season 12
| What is the purpose of a cryptocurrency exchange? |
|---|
| Why is security important in the context of cryptocurrency exchanges? |
|---|
Security is very important in cryptocurrency exchanges because they handle digital money and private financial details of all users who trading on platform. so now Im going to share some points why security is important for exchanges?:
- Protection from Hacking: Cryptocurrency exchanges are often targeted by hackers who want to steal money like any crypto coin Btc, eth its just an example of some coin .If hackers succeed users could lose their funds and the exchange's reputation could be damaged like when AXS means Infinity coin was Hacked then the reputation of Infinity from 150$ to drop 6$ this was just for hacking same in exchange if any exchange will be hacked then it will not be good for their reputation.
- Keeping User Money Safe: Exchanges keep users' money in digital wallets in any Pair form Like btc usdt eth usdt or in singke frm only like btc ,eth ,bnb. It's crucial to have strong security to stop unauthorized people from accessing and stealing these funds so thats why it's also a main reason for security.
- Building Trust: If there's a security breach, users and investors may lose trust in the exchange. A secure exchange shows it cares about protecting users' money and keeping the platform honest so a strong security can only make people trust and gain trust if trust rate will be high then more investir or users will come to an exchange.
- Following Rules: Many places have rules for cryptocurrency exchanges to protect customers and stop illegal activities like money laundering. Following security standards helps exchanges obey these rules in Pakistan exchanges is not legal but the country who have its legalized so They have this rules.
Overall the focus on security helps keep users' money safe the main point and builds trust in the exchange and makes sure it follows the rules. i hope you will understand from my explanation.
| hat distinguishes decentralized exchanges from centralized ones? |
|---|
Decentralized exchanges (DEXs) and centralized exchanges are different in some important ways:
- Control and Ownership:
Centralized exchanges are run by one company, so they have full control over how they will work .
Decentralized exchanges work on blockchain networks and don't belong to any one company. They're managed by smart contracts and everyone using them.
- Security and Trust:
Centralized exchanges keep users' money and info on their own servers, which can be targets for hackers.
Decentralized exchanges let users keep control of their money in their own wallets making it harder for hackers to steal because they are in users hand.means wallet
- Liquidity:
Centralized exchanges usually have more money moving around because they control the trading.
Decentralized exchanges might have less money moving around since trading happens directly between users.
In short, decentralized exchanges are safer, harder to control, and give users more control, while centralized exchanges have more money moving but require trusting a single authority.
| I'm Inviting @woodmoneyking,@ayushsarkar,@yenny47,@nalainzahr,@mubasherali,@shahid2030 @artist1111 @sahar78 @chasad75 @reetuahlawat @monta26 @nushrat @beemengine @kyrie1234 @seo-boss @steemitbloq for participate in this contest. |
|---|
| Written by | @danish578 |
|---|---|
| Contest-Topic | The Tech Quiz - Season 12 |
| Community | Steem4bloggers |
| Picture Source | Mentioned with All pictures |
| Editing | Default |
| Beneficiaries | 25% @null |
| Thanks For Voting My Post | |
Twitter share:https://x.com/danifx578/status/1750569514385969441?s=20
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Bro you need to use newcomer tag in first four tags .
Also burnsteem25 in first four .
Thanks alot dear . Next time i will be careful about that and also the post is now edited
Masha'Allah Very good post dear brother.... Apny tamam pehlooon pr achi tarah sy baat ki or inko bohat achy alfaaz me smjhaya.
Apka bht bht shukriya numan bhi k ap na meri post ko read kiya